Adani, which already has mining and environmental licences from the state government, requires the state approvals on management plans on the endangered finch bird and groundwater in order to commence the mine construction.
The challenge was launched by Mackay Conservation Group in January.
The $16.5 billion Carmichael coal mine project when completed would be one of the world's largest.
The Adani group had applied for the Northern Australia Infrastructure Facility loan for building the 388-km rail line to connect the Carmichael coal mine to the sea port.
Bank of New York Mellon Corp has pulled out of providing financial services to the Adani group and its Carmichael coal mine in Australia, saying the venture is incompatible with its environmental, social and governance rules.
The project includes a 300 kms rail line connecting Adani's planned Carmichael Coal Mine, Northwest of clermont, to the Abbot Point Coal port, near the Great Barrier Reef.
The final and last approval for the Adani group's long-delayed billion dollar mega coal mine project came weeks after a surprise election win of Australia's pro-coal ruling coalition led by Prime Minister Scott Morrison.
"Independence means if government has done something wrong, you say it's wrong. But at the same time, you should have courage when the government is doing the right thing every day. You have to also say that," he Gautam Adani was quoted as saying by FT.
Adani Mining is building a 300-km rail line for its about $16 billion Carmichael coal mine project in Australia.
Adani's $15-billion Carmichael coal mine is stuck since 2010.
However, Adani Australia has clarified on its Facebook page on Monday that in terms of quality of the coal it is almost 50 per cent better than that used domestically.
'We are writing to respectfully ask you to abandon the Adani Group's proposal in Queensland's Galilee Basin...Pollution from burning coal was the single biggest driver of global warming, threatening life in Australia, India and all over the world'
90 prominent Australians warn Indian energy giant Adani that its controversial coal mine project in Queensland could damage bilateral ties and even affect sporting links.
Adani Enterprises recently also inked a pact to buy out Linc Energy's royalty rights from the Carmichael coal project for AUD155 million.
The development of the coal mine located at Queensland in Australia and required infrastructure including railways would cost $7.6 billion.
The approval was announced by Environment Minister Greg Hunt, who said "after undertaking a thorough assessment and consideration under national environment law, I have approved the Carmichael Coal Mine and Rail Infrastructure project, subject to 36 strict conditions".
The massive coal mine in Queensland state has been a controversial topic, with the project expected to produce 2.3 billion tonnes of low-quality coal.
The lobby objected to the Indian mining giant's $16.5 bn Carmichael project.
Adani CEO Jeyakumar Janakraj said the Adani issue was not on the agenda of Jaitley's visit.
SBI blamed poor coal prices for the decision to turn down the loan request.
Adani group's 16.5 billion dollar controversy-hit coal mine project in Australia has cleared another hurdle with Brisbane supreme court dismissing an appeal filed by indigenous group against the project.
Media reports said the decision was mutual.
Green and Indigenous groups in Australia have criticised the government's decision to grant new approval to Indian mining giant Adani's $16.5 billion controversial coal mine project in central Queensland.
The Congress on Thursday questioned the decision of State Bank of India to give $1 billion loan to Adani group for the development of Carmichael coal mine during Prime Minister Narendra Modi's just concluded visit to Australia.
Eyeing to become India's largest player in 2020 Adani Group plans to invest 70 per cent of its capital expenditure in clean energy and energy efficient systems.
Adani, which estimates its project will generate more than A$22 billion ($15.6 billion) in taxes and royalties, has yet to line up funding but is sticking to a late 2017 start date.
Adani's Carmichael project has been stuck in the approvals process for the past five years.
OSCO E&C said Adani had asked it to halt its design work as of July 16, with tentative plans to resume work in early October.
An Australian environmental group has launched a legal challenge against Adani Enterprises' $7 billion Carmichael coal mine project in the Galilee Basin.
Approval for Adani's Carmichael coal mine was set aside last week.
This would be bigger than group co Adani Power's existing capacity.
After Congress questioned the logic of the $1 billion loan to the Adani group, the Communist Party of India (CPI) on Friday joined issue demanding RBI's intervention in the matter.
Adani intends to ship most of the coal from the mine to India.
Some landowners had alleged that Adani was 'misleading' the public.
Shares of IT companies were in focus with the Nifty IT and S&P BSE IT index gaining more than 2% in an otherwise lower market
"I am proud to announce the project has Final Investment Decision (FID) approval which marks the official start of one of the largest single Infrastructure -- and job creating -- developments in Australia's recent history," Gautam Adani said.
Unlike RIL, the Adani group has not yet brought in any big stakeholders to refinance debt or expand.
The group companies now lead the market capitalisation league table in sectors such as ports, power generation, gas distribution and transmission, and power transmission and distribution, ahead of incumbents in both public and private sector. This has Gautam Adani family the second wealthiest in business in India.
Adani will go ahead with its $15 bn mine, rail and port project.
The group plans Rs 30,000-cr oil refinery with IOC; buys Lanco's Udupi power plant for Rs 6,000 cr